ABSTRACT

The courts will not enforce an agreement that is illegal, even though it complies with all the requirements of a binding contract. Such agreements are void. However, there appears to be a presumption in favour of legality.1 The case law in relation to illegality is conflicting. This may be due to efforts by the courts to avoid the consequence of a finding of illegality in circumstances where this would allow a guilty party to avoid liability. Illegal contracts can be subdivided into: • contracts contrary to law; and • contracts contrary to public policy.